Recylex applies for protective shield procedures for German operations

Recylex chairman and CEO Sebastian Rudow expects
the entities to continue their business operations
14.05.2020 − 

The Recylex Group has applied for creditor protection under German law for its subsidiaries Weser-Metall GmbH, Harz-Metall GmbH, Norzinco GmbH and PPM Pure Metals GmbH. "The objective which was to turn around the group as a whole, initiated during 2018, is now stopped due to the SARS-CoV-2 pandemic’s effects," the group announced.

The slump in the zinc price and the deteriorating economic outlook had rendered unrealistic any expectations of being able to run Harz-Metall GmbH on a going-concern basis. Management had therefore been compelled to file for insolvency for all the German companies of the group, Recylex reported. The company has applied to use self-administration procedures for the German subsidiaries Recylex GmbH, C2P Germany GmbH and Recylex Grundstücksverwaltungsgesellschaft mbH.

The managements of Weser-Metall GmbH, Harz-Metall GmbH, Norzinco GmbH and PPM Pure Metals GmbH filed for protective shield procedures. According to the parent company, the objective of these procedures is "to continue each business operation and to implement individual restructuring processes and, therefore, to enable the companies to survive once the SARS-CoV-2 pandemic has been overcome."

Harz-Metall is based out of Goslar and processes zinc-rich wastes and spent lead-acid batteries and other lead wastes to produce secondary raw materials. The lead materials were supplied to the lead smelter of sister company Weser-Metall in Nordenham, Germany. Recylex S.A.'s two French battery-breaking sites are to continue to supply lead scrap to the smelter. According to the parent group, the plants, which had shut down temporarily due to the Coronavirus outbreak, have gradually resumed operations and have begun to supply materials to Weser-Metall, but had been requiring payment in advance.

“I am expecting that the special restructuring benefits provided by German law in these procedures will enable the entities to continue their business operations and to pursue their restructuring according to a path individually chosen by them," said Sebastian Rudow, Recylex’ chairman and CEO.

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